Lesson 2 Flashcards
Activities of planning and control
Scheduling, Loading, Monitoring and control, Sequencing
Planning & control
Sales and operations planing (S&OP)
- a multidiscipline process, where all critical functions will agree on an action plan to fulfil strategic goals
Lead time
a span of time required to perform a process
Cumulative lead time
longest planned length of time to accomplish the activity in question
Delivery lead time
the time from the receipt of a customer order to the delivery of a product
Objective of planning and control
to satisfy customer demand and to ensure the availability of resources
what gets planned
material: inventory/stock
capacity: means of production
S&OP in action
sales forecast > order forecast > supply schedule > order schedule
What are questions of priority and capacity of good planning & control system
- what are we going to make?
- what does it take to make it?
- what do we already have?
- what must we get and when?
Top-down planning and control
S&OP > Master scheduling > Material requirements planning > Production activity control & Vendor order management
Master scheduling definition
A detailed planning process that tracks production output and matches this output to actual customer orders
Master scheduling what it does
- makes specific the overall resource levels established by S&OP
- states exactly when and in what quantities specific products will be made
- links production with specific customer orders, allowing the firm to tell the customer exactly when an order will be filled
- informs the operations manager what inventory or resources are still available to meet new demand
Master schedule record
- forecasted demand
- booked orders
- projected inventory level
- production quantities
- units still available to meet customer needs
Forecasted demand
best estimate of the demand in any period
Booked orders
confirmed demand
